Chapter 11, Ambiguous Democracy Summary and Analysis

The spirit of Chapter 11 is, as the title indicates, one of ambivalence. It begins with the revving up of Jackson's war against the Bank. Jackson is convinced that hard money—gold and silver—is the only way to bring financial stability to the country and to prevent the rich from gaining wealth through investments made at the expense of inflation, monetary instability, debt and the boom-bust cycle. His war against the Bank is opposed by many, including bank chairman Biddle. The Bank of the United States has to be rechartered by Congress periodically and so the legislative conflict is to determine whether the Bank will survive or die in Jackson's second term.

In response to pressures from Jackson and his democrats, Biddle decides to contract the money supply in order to send the economy into...